More investors are looking for different ways to generate yield in the current low interest rate environment, ANZ head of sales Australian equities and wealth Irene Deutsch told InvestorDaily.
Borrowing within super to invest in equities on a protected basis could be particularly appealing for self-managed super fund (SMSF) and other high net worth (HNW) investors, Ms Deutsch said.
She said ANZ’s newly announced Cobalt loan option platform allows investors to invest in Australian or US stocks or exchange traded funds (ETFs).
“Anything US-related is getting a lot of interest right now,” Ms Deutsch added.
The facility also allows investors to set their level of protection and loan period, without being at risk of margin calls.
“Recent Investment Trends research has shown that investors, specifically in the HNW group, are seeking an increased exposure to equities, with a growing appetite towards US share markets in particular,” Ms Deutsch said.
“ANZ Cobalt has been designed to meet this demand by providing access to US-listed stocks and US-listed exchange traded funds, along with exposure to the traditional suite of Australian listed shares and ETFs on a protected basis.”
It also provides a “profit lock-in mechanism” that lets investors nominate a predetermined price level at which their protection will ratchet up to a new higher protection level, she added.
